FCC Developing Broadband Grid Plan : MediaBytes with Shelly Palmer April 9, 2009 April 9, 2009
Posted by Mark Blei in : Uncategorized , add a commentThe FCC began its Notice of Inquiry to create a National Broadband Plan. A plan to roll out a nationwide, broadband grid is part of the American Recovery and Reinvestment Act, which requires the FCC to develop “the most effective and efficient ways to ensure broadband access for all Americans.” FCC interim commissioner Michael Copps noted that “If we do our job well, this will be the most formative—indeed transformative—proceeding ever in the Commission’s history.”
Politicians are beginning to lobby against Time Warner Cable’s decision to charge users by the amount of bandwidth consumed. NY Congressman Eric Massa, who represents Corning, NY, which is near Rochester, one of the cities TWC is testing tiered broadband plans, noted that “at a time when access to information is driving our economic recovery, Time Warner is moving to stagnate the 21st Century technology needed to rebuild America.” While technically there is nothing legislators can do to regulate TWC’s actions, this sort of tiered payment platform could give competitors like Verizon and AT&T a leg up on TWC.
According to AdAge, YouTube is now selling advertising on 9% of all US video views. While YouTube has yet to develop a profitable business plan, a spokesman noted that it is placing ads around more videos that its nearest competitor, MySpace, has total views. YouTube ad sales are up 3% over last year.
Apple is being sued over its touchscreen feature by Taiwanese company Elan Microelectronics. Elan’s lawsuit alleges that Apple’s MacBook, iPhone and iPod touch infringe on two patents that Elan has the rights to. Apple refused to comment on the patent infringement suit.
Rather than waiting until Summer, ABC is launching some off-season shows at the end of May. The network will begin airing episodes of The Bachelorette, Here Come The Newlyweds and Wipeout, as well as The Goode Family, before other networks begin their Summer schedules.
Disney In Talks with Hulu, YouTube: MediaBytes with Shelly Palmer March 30, 2009 March 30, 2009
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Disney is in talks with NBCU-Fox joint venture Hulu on becoming a partner. While details are scant, a partnership would likely open up the popular online streaming video service to ABC programming, as well as content from other Disney owned properties like ESPN and the Disney Channel. The news comes after Hulu reportedly served over 333 million videos in February, effectively making it one of the most popular streaming video sites on the web.
On the other hand, Paid Content is reporting that Disney is also in the final stages of discussions with Google about distributing content on YouTube. The supposed deal, which could come before a deal with Hulu, would legally put selected clips from ESPN, ABC, and other Disney outlets on the streaming video site. In return, Google and Disney would share ad rev, with Disney controlling the inventory.
eBay’s Skype plans to release a version of its VOIP software for the iPhone. The free iPhone application will allow users all the functionality of its regular software, including calling people on computers, cellphones and landlines (for a fee). The free software will only work when a user is connected to a Wi-Fi network and puts Skype in direct competition with wireless providers.
AMC has reached a deal with Sony to equip all AMC theaters with digital projectors. The deal will make AMC’s 309 theaters and 4,628 screens capable of displaying a digital picture, as well as handling Real 3-D films in true format. Installations will begin in the second half of 2009 and are expected to be complete by the end of 2012.
Pioneer to Close Unprofitable Flat Screen TV Business : MediaBytes with Shelly Palmer February 9, 2009 February 9, 2009
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Watch Shelly’s commentary on Pioneer closing its unprofitable flat-screen TV business and how this is a sign of the time for the Consumer Electronics industry.
President Obama is set to make Melissa Hathaway his head of cyber security. Hathaway, who also worked in the Bush administration, will be in charge of reviewing and maintaining secure computer networks for the government. Hathaway is responsible for the cyber security plan developed during the Bush years.
DreamWorks and Disney are expected to announce a distribution deal this morning after DreamWorks contract with Universal expired on Friday. Sources say Disney will distribute six films a year for DreamWorks, while also helping the company financially. Disney will receive a distribution fee of 8% from DreamWorks.
The USA Network has signed a $200 million deal for basic cable and broadcast rights to 24 films by Universal Pictures. The contract will give USA exclusive premier rights to Universal films, including Bruno, the sequel to Borat. While the deal is expected to be worth $200 million, if Universal’s films flop at the box office, USA could end up paying half the amount.
LG will cut costs by 30% this year in accord with its forecast which predicts a 20% drop in sales. CEO Nam Yong said the consumer electronics manufacturer would not cut jobs immediately, rather it would stress productivity and efficiency to get through the tough economic times. LG may relocate 20% of its domestic work force to growth industries like solar energy development.
Led Zeppelin front man Robert Plant and country singer Alison Krauss took home all five awards they were nominated for last night at the Grammy’s. Other winner’s included Coldplay for song of the year, and rapper Lil Wayne, who took home 4 awards.
DTV Transition Postponed Until June 12 : MediaBytes with Shelly Palmer February 5, 2009 February 5, 2009
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As expected, the House of Representatives passed the bill to postpone the end of analog television. The Democrats easily got the majority needed to pass the bill, which saw legislators voting on strict party lines. Once President Obama, who is expected to approve the bill, signs off, the end of analog television will officially be June 12, 2009.
Ironically, the Pew Research center recently found that 97% of people questioned were aware of the transition from digital to analog television. The survey also found that 81% of respondents had “heard alot” about the transition.
Nielsen, which originally stated that an average of 95.4 viewers watched the Super Bowl, is now reporting that 97.5 million Americans tuned in to the game. The new number would make the contest between the Steelers and the Cardinals the most watched Super Bowl in history and the second most watched program in the history of television.
After posting a loss of $16 billion dollars, Time Warner was notified by Google that they would either have to spin off AOL or sell Google back its 5% share at market value. Google invested $1 billion in AOL during a bidding war with Microsoft over search. That same deal valued AOL at $20 billion, a supremely inflated price compared to the $5.4 billion Google believes AOL is currently worth.
Time Warner Cable announced that they will be expanding their metered broadband tests. A spokesman noted that the trials will soon begin in four new markets and will feature offers of 5GB, 20GB and 40GB of usage a month. The company will charge users who go over set limits $1/GB.
Let’s Talk Twitter: MediaBytes with Shelly Palmer January 29, 2009 January 29, 2009
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The House of Representatives defeated the bill to delay the DTV transition. For now the transition will still happen on February 17th, 2009. However, an amended bill could be reintroduced as early as next week.
The RIAA may be teaming up with ISP’s to fight illegal fire sharing. The Recording Industry Association of America is reportedly in talks with AT&T and Comcast to send intellectual property pirates warnings about illegal sharing and may even terminate violaters accounts. The move comes just weeks after the RIAA announced that they would cease to pursue legal action against illegal file sharers.
AOL will lay off 10% of its workforce. AOL CEO Randy Flaco announced that the company would cut nearly 700 positions over the next few quarters. The move comes as no surprise for the struggling company, whose parent company Time Warner recently announced a $25 billion write-down.
The New York Times has hired Goldman Sachs to explore sale of its share of the Boston Red Sox. The Times, whose income fell 48% year over year, owns a 17.8% share of New England Sports Venture, which owns the Red Sox.
ABC may move Jimmy Kimmel Live into Nightline’s time slot. The programming decision would pit Kimmel directly against NBC’s Conan O’Brien, who is set to take over the Tonight Show. Nightline has aired in the 11:35 ET time slot for over 29 years.
Zucker says #1 show is TiVo: MediaBytes with Shelly Palmer January 23, 2009 January 23, 2009
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Yesterday, while at a Google TV ads conference, NBC head Jeff Zucker noted that TiVo is the number one show on at 10pm. Last year at a conference, Zucker made a similar remark on the future of television, saying “Why should I trade analog dollars for digital pennies.”
While Google reported its first ever decline in quarterly profits, its Q4 revenue jumped 18% to $5.7 billion. The increase, which may seem positive, is the first time Google has posted growth revenue under 30%. A most impressive quarter in a down trending economy.
Google is blaming its profit decline on writedowns from investments in AOL and Clearwire, the Wi-Max wing of Sprint Nextel. Google took a $726 million impairment charge on a $1 billion investment it made in AOL in 2005. Based on the investment, analysts have noted that Google must consider AOL to be worth $5.5 billion, roughly $1.5 billion lower than Jeff Bewkes’s reported asking price.
Microsoft has confirmed plans to cut 5,000 jobs. The move comes after the company posted an 11% decrease in quarterly profit. The news shocked investors, who unloaded shares, bringing MSFT to its lowest trading price in over a decade.
Sony is reporting a $3 billion annual loss. Of the news, Sir Howard said “The massive economic upheaval being experienced across the world is sparing no one in the consumer electronics world.” Sir Howard Stringer noted that not only is the global economy in shambles, but consumer are apprehensive to buy and retailers are going bankrupt and liquidating like wild fire.
The Screen Actors Guild will not be going on strike any time soon. National Executive Director Doug Allen has proposed plans to suspend the strike-authorization vote, a controversial issue which has caused a great deal of tension inside the organization. All things considered, the time certainly isn’t right for a strike, as it will only adversely affect an already brittle economy.
Obama Inauguration Spikes Web Traffic, Streaming Video: MediaBytes with Shelly Palmer January 21, 2009 January 21, 2009
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The Inauguration of President Barack Obama effectively spiked web traffic yesterday and put a lot of stress on many sites who were streaming the event. CNN said that it had over 21.3 million video streams during their nine-hour online coverage. They noted that the 21.3 million streams was extremely higher than their previous best of 5.3 million streams, which happened on election day.
In one of his first moves as President, Barack Obama rolled out a new look for WhiteHouse.gov. The first broadband President, whose understanding of both the medium and the message is outstanding, updated the government site, which now features a blog and RSS feeds for different issues. The site also includes a feedback section where “all non-emergency legislation” will be posted to the “website for five days”, allowing the “public to review and comment before the President signs it.”
Soon to be former FCC Chairman Kevin Martin is proposing fines against cable providers who move analog channels to digital tiers and force consumers to adapt to the changes by either buying a digital set top box or purchasing a more expensive package. Martin noted in a letter to Senator Jay Rockefeller and the Committee on Commerce, Science, and Transportation, that “The Commission has received nearly 600 complaints from cable subscribers around the country who one day were watching their favorite channel and then the next day were unable to access it.”
Warner Brothers announced that it will layoff 10% of it’s workforce. CEO Barry Meyer and President Alan Horn wrote that “The changing entertainment business landscape, shifting consumer demand and the overall state of the economy have affected companies around the world and Warner Bros. is not immune to these factors.”
According to Bloomberg, the SEC is reviewing Apple’s statements on Steve Job’s declining health. Details have been sketchy for months, now the investigation will determine whether or not Apple purposely has changed its stance on Job’s health in order to maintain stockholder value. Last week Jobs took a leave of absence, while the week before he noted he had a slight hormonal imbalance.
Steve Jobs Takes A Leave Of Absence: MediaBytes with Shelly Palmer January 15, 2009 January 15, 2009
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Apple CEO Steve Jobs will take a leave of absence from the company in order to deal with health problems. Jobs, 53, a Cancer survivor, claims his health issues are “more complex” than he originally thought. Apple’s stock fell $6.03 or 7.1% in after hours trading and is expected to fall even more this morning. Timothy Cook, COO of Apple, will handle day-to-day operations while Jobs is on leave.
The economy is so bad, Donald Trump has Celebrity Apprentice contestant Joan Rivers out on the street hawking cupcakes with a megaphone. Unfortunately for Joan, no one is buying! Trump believes that we are already in a depression and noted that it’s especially hard to start a small business during these trying financial times.
Motorola announced that it plans to cut more than 4,000 jobs in 2009. This comes in addition to the 3,000 jobs Motorola cut in 2008 after freezing pension plans and reducing the salaries of executives. The mobile phone manufacturer believes the additional cuts will help save the company $700 million in 2009, or total of $1.5 billion when coupled with the cuts from 2008.
Nortel Networks, who manufactures fiber optic telecommunications equipment, filed for Bankruptcy protection yesterday. Analysts believe that the company’s financial problems are so severe that the company could be liquidated. Analyst Mark Sue is quoted as saying “I don’t think it’s going to exist.”
Google is set lay off 100 recruiters and discontinue a variety of its product sites including Google Video. While Google does not plan on getting rid of the site all together, they will turn off uploading capabilities in the coming months, and focus on YouTube as its primary video outlet. Google is also closing Google Catalog Search, Notebook, Dodgeball, the microblogging service Jaiku and the Google Mashup Editor in order to focus on products with a wider audience.
Sources say that Microsoft may announce significant job cuts as early as next week. While the folks at Redmond are staying quiet, if they were to layoff workers next week it would come just as the company’s second quarter earnings report is scheduled to be released on January 22th.
Jeremy Piven Leaves Speed-The-Plow: MediaBytes with Shelly Palmer December 19, 2008 December 19, 2008
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Jeremy Piven left David Mamet’s Speed-the-Plow this week, claiming mercury poisoning. Piven, who eats sushi twice a day, received a doctor’s note after tests showed elevated levels of Mercury. Piven’s role will be taken over by Norbert Leo Butz, who will be followed by William H Macy.
GE CEO Jeffrey Immelt expects NBCU to post a profit of $3 billion for 2008. An upbeat Immelt told investors that profits at NBCU could be flat in 2009, or even slightly down. Immelt noted that the new Jay Leno variety show is one of the ways NBCU plans to cut costs and hopefully increase profit in 2009.
The Wall Street Journal is reporting that the RIAA plans to stop the legal pursuit of illegal downloaders and enact more effective ways to combat digital piracy. Since 2003, the RIAA has brought lawsuits against approximately 35,000 people, including “single mothers, a dead person and a 13-year old girl.” The RIAA now hopes to partner with ISP’s in order to combat piracy from the ground up.
Macrovision has sold the TV Guide Network to Alan Shapiro and One Equity Partners for $255 million dollars, with an additional $45 million to be paid by 2012. The deal also includes the TVGuide.com network, a network of TV related sites, which only recently became bundled in the deal. Macrovision gained a considerable amount for for the network than it did TV Guide magazine, which it sold in October for $1 and liabilities.
Plus, today’s consulting question, “Is linking to a site that features pirated material actionable?” Shelly has the answer on today’s MediaBytes.
Moonves Says “TV Model Ain’t Broken”: MediaBytes with Shelly Palmer December 11, 2008 December 11, 2008
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In reaction to Jeff Zucker’s comment that the old TV business is dying, CBS exec Les Moonves is adamant that “the model ain’t broken. The model works.” Moonves also harped on the importance of local television, saying “We do not want to bypass the importance of local broadcasters to their communities”, which could “change the whole economic model drastically.” Of course, CBS is the highest rated network these days and is winning 4 out of 5 nights a week during the 10 o’clock slot, while NBC ranks fourth overall.
SAG has notified its members that strike authorization ballots will be sent on January 2nd. The vote would need the support of at least 75% of members paid in full, which would still only give SAG the authority to call a strike if they have to. Ballots are expected to be counted by January 23rd, with a decision following shortly.
Verizon is hoping to rollout LTE service in 2009. Verizon CTO Dick Lynch told a crowd at a Cisco conference that he expected LTE service to be available “this time next year.” LTE, which can transmit 100Mbps down and 50Mbps up, is the wireless providers next generation wireless service, and will compete with the Wi-Max, neither of which are interoperable.
CBS’s The Mentalist took in 18.8 million viewers to take number one on Tuesday. The show has been so popular that a rerun garnered an equally impressive 14 million viewers. CBS is hoping that the Simon Baker show will become its next bona fide hit.
Plus, today’s consulting question, “Is Microsoft going to announce a Zune Phone at CES?” Shelly has the answer on today’s MediaBytes
